Which of the following mathematical statements must be true if a firm is maximizing profit?

Choose 1 answer:
(A) $P

Q: Which of the following mathematical statements must be true if a firm is maximizing profit? Choose 1 answer: (A) $P<A V C(Q)$ (B) $P=A T C(Q)$ (C) $M R(Q)=A T C(Q)$ (D) $M R(Q)=M C(Q)$ (ㄷ) $M C(Q)=A T C(Q)$

∻Solution∻ ‖ a ⋮ Profit Maximization Rule: A firm maximizes profit by producing the quantity of output where marginal revenue (MR) equals marginal cost (MC). ‖ ‖ b ⋮ Mathematical Expression: The condition for profit maximization in a perfectly competitive market is $MR(Q) = MC(Q)$. ‖ ∻Answer∻ ⚹ D: $MR(Q) = MC(Q)$ ⚹ ∻Key Concept∻ ⚹ Profit Maximization in Competitive Markets ⚹ ∻Explanation∻ ⚹ A firm maximizes profit by producing at the quantity where marginal revenue equals marginal cost, which is represented by the equation $MR(Q) = MC(Q)$. This is the fundamental condition for profit maximization in competitive markets. ⚹◊What is the relationship between marginal revenue and marginal cost in a firm that is maximizing profit according to the provided options?⍭ Generate me a similar question◊

Question

Which of the following mathematical statements must be true if a firm is maximizing profit?

Choose 1 answer:
(A) $P<A V C(Q)$
(B) $P=A T C(Q)$
(C) $M R(Q)=A T C(Q)$
(D) $M R(Q)=M C(Q)$
(ㄷ) $M C(Q)=A T C(Q)$

Accepted Answer

∻Solution∻ ‖ a ⋮ Profit Maximization Rule: A firm maximizes profit by producing the quantity of output where marginal revenue (MR) equals marginal cost (MC). ‖ ‖ b ⋮ Mathematical Expression: The condition for profit maximization in a perfectly competitive market is $MR(Q) = MC(Q)$. ‖ ∻Answer∻ ⚹ D: $MR(Q) = MC(Q)$ ⚹ ∻Key Concept∻ ⚹ Profit Maximization in Competitive Markets ⚹ ∻Explanation∻ ⚹ A firm maximizes profit by producing at the quantity where marginal revenue equals marginal cost, which is represented by the equation $MR(Q) = MC(Q)$. This is the fundamental condition for profit maximization in competitive markets. ⚹◊What is the relationship between marginal revenue and marginal cost in a firm that is maximizing profit according to the provided options?⍭ Generate me a similar question◊

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